TRI POINTE HOMES INC (TPH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPH - US87265H1095 - Common Stock
33.59 USD
-0.25 (-0.74%)
TPH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. TPH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TPH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TPH was profitable.
- TPH had a positive operating cash flow in the past year.
- TPH had positive earnings in each of the past 5 years.
- Each year in the past 5 years TPH had a positive operating cash flow.
1.2 Ratios
- TPH has a Return On Assets (6.22%) which is comparable to the rest of the industry.
- With a Return On Equity value of 9.39%, TPH perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- TPH has a Return On Invested Capital (6.45%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for TPH is in line with the industry average of 9.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 9.39% | ||
| ROIC | 6.45% |
ROA(3y)9.52%
ROA(5y)9.28%
ROE(3y)15.16%
ROE(5y)15.46%
ROIC(3y)10.2%
ROIC(5y)10.07%
1.3 Margins
- TPH has a better Profit Margin (8.27%) than 71.67% of its industry peers.
- In the last couple of years the Profit Margin of TPH has grown nicely.
- With a decent Operating Margin value of 10.40%, TPH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- TPH's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 22.20%, TPH is doing worse than 68.33% of the companies in the same industry.
- TPH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.4% | ||
| PM (TTM) | 8.27% | ||
| GM | 22.2% |
OM growth 3Y-5.72%
OM growth 5Y7.18%
PM growth 3Y-4.72%
PM growth 5Y8.69%
GM growth 3Y-2.33%
GM growth 5Y2.47%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TPH is still creating some value.
- The number of shares outstanding for TPH has been reduced compared to 1 year ago.
- Compared to 5 years ago, TPH has less shares outstanding
- TPH has a better debt/assets ratio than last year.
2.2 Solvency
- TPH has an Altman-Z score of 3.90. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.90, TPH is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
- The Debt to FCF ratio of TPH is 4.34, which is a neutral value as it means it would take TPH, 4.34 years of fcf income to pay off all of its debts.
- TPH's Debt to FCF ratio of 4.34 is in line compared to the rest of the industry. TPH outperforms 55.00% of its industry peers.
- A Debt/Equity ratio of 0.36 indicates that TPH is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.36, TPH perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.74
WACC8.75%
2.3 Liquidity
- TPH has a Current Ratio of 9.02. This indicates that TPH is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of TPH (9.02) is better than 90.00% of its industry peers.
- A Quick Ratio of 1.99 indicates that TPH should not have too much problems paying its short term obligations.
- With an excellent Quick ratio value of 1.99, TPH belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.02 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
- The earnings per share for TPH have decreased strongly by -29.67% in the last year.
- TPH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.86% yearly.
- Looking at the last year, TPH shows a very negative growth in Revenue. The Revenue has decreased by -16.60% in the last year.
- The Revenue has been growing slightly by 7.82% on average over the past years.
EPS 1Y (TTM)-29.67%
EPS 3Y5.7%
EPS 5Y26.86%
EPS Q2Q%-45.76%
Revenue 1Y (TTM)-16.6%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-25.74%
3.2 Future
- The Earnings Per Share is expected to decrease by -15.26% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -8.56% on average over the next years.
EPS Next Y-41.41%
EPS Next 2Y-30.62%
EPS Next 3Y-15.26%
EPS Next 5YN/A
Revenue Next Year-23.15%
Revenue Next 2Y-16.48%
Revenue Next 3Y-8.56%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.91, the valuation of TPH can be described as very reasonable.
- Based on the Price/Earnings ratio, TPH is valued a bit cheaper than the industry average as 71.67% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.25. TPH is valued rather cheaply when compared to this.
- TPH is valuated correctly with a Price/Forward Earnings ratio of 14.45.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TPH is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. TPH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPH indicates a somewhat cheap valuation: TPH is cheaper than 63.33% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, TPH is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.64 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
- TPH has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as TPH's earnings are expected to decrease with -15.26% in the coming years.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-30.62%
EPS Next 3Y-15.26%
5. Dividend
5.1 Amount
- TPH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TRI POINTE HOMES INC / TPH FAQ
What is the ChartMill fundamental rating of TRI POINTE HOMES INC (TPH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TPH.
Can you provide the valuation status for TRI POINTE HOMES INC?
ChartMill assigns a valuation rating of 5 / 10 to TRI POINTE HOMES INC (TPH). This can be considered as Fairly Valued.
Can you provide the profitability details for TRI POINTE HOMES INC?
TRI POINTE HOMES INC (TPH) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for TPH stock?
The Earnings per Share (EPS) of TRI POINTE HOMES INC (TPH) is expected to decline by -41.41% in the next year.